Developers have been pulling all-nighters all weekend to fix things as they fall behind their software launch.
Electroneum, a blockchain with the cryptocurrency ETN that allows people to mine simply through their smart phones, successfully amassed $40 million in its ICO from September 14 to October 31 with over 120,000 contributors and 300,000 users registering. But shortly after, the blockchain fell victim to a distributed denial of service (DDoS) attack, locking users out of their account for days and ultimately forcing the startup to postpone the launch of their online and mobile wallets, as well as their mobile miner.
The UK-based startup issued a statement through their website, saying they have reset all passwords as a preventive measure. There was no mention of any funds lost yet.
Some users have expressed dismay over Electroneum failing to anticipate such an attack through thorough testing before getting listed in exchanges, especially considering the fact that they have $40 million in the bank. Updates on their Facebook page have been consistent, on the other hand, saying they have been relentlessly working on the code over the weekend.
Initial coin offerings (ICOs) attract a lot of investments despite a lack of regulation and protection. The cryptocurrency boom has seen a few cryptocoins rising exponentially in value. Due to this perception of potentially high profits in a substantially small amount of time, the cryptocurrency trade has seen investors—both professionals and amateurs alike, flocking to online exchanges to trade, and actively seeking out ICOs.
While it is true that such investments could possibly yield exponential profits, people should read up and do a thorough background research on the ICO’s they intend to support, as well as the people behind the company. At the moment, legislation is not fully equipped to protect ICO investors, or to rectify any wrongdoing should the people behind the ICO fail to fulfill agreements or decide to completely ghost out on investors. In some cases, the promise of “shooting to the moon” could very well end in a ball pit of tears.